Can you get a mortgage on a freehold flat?
Yes — but it can be more difficult than a standard property.
Freehold flats are considered non-standard by many lenders, which means fewer mortgage options and stricter criteria. However, with the right advice and access to specialist lenders, it is still possible to secure a mortgage.
Not sure if you can get a mortgage on a freehold flat?
Freehold flats can be harder to finance, and choosing the wrong lender can lead to delays or declined applications.
At Kerr & Watson, we help you identify lenders who will consider freehold flats and structure your application correctly from the start.
What Is a Freehold Flat?
A freehold flat is a property where you own your individual flat outright, without a leasehold structure.
Unlike leasehold flats, there is no freeholder responsible for maintaining the building or managing communal areas. Each flat owner typically has responsibility for their own part of the property.
While this can remove costs like ground rent and service charges, it also creates challenges around maintenance, legal structure, and mortgage lending.
Why are freehold flats harder to mortgage?
Lenders consider freehold flats higher risk for several reasons:
No formal maintenance structure
There is often no legal agreement ensuring all owners contribute to repairs
Disputes between owners
Disagreements over costs and responsibility can delay essential work
Resale concerns
Fewer buyers and lenders can reduce demand and property value
Valuation complexity
Surveyors may struggle to assess value due to lack of comparable properties
Because of this, many high street lenders will not consider freehold flats, meaning you may need a specialist lender.
How to get a mortgage on a freehold flat
While more complex, there are ways to improve your chances:
- Work with a specialist mortgage broker: Not all lenders accept freehold flats, so access to the right lenders is key
- Check the legal structure: Some properties can be converted to leasehold or “share of freehold” arrangements
- Consider a deed of covenant: This can formalise maintenance responsibilities between owners
- Review building arrangements: Lenders prefer properties where responsibilities are clearly defined
- Speak to a solicitor early: Understanding legal obligations can prevent delays during the mortgage process
Getting this right early can significantly improve your chances of approval.
When might you struggle to get a mortgage on a freehold flat?
You may find it more difficult if:
- There is no formal agreement for shared maintenance
- The building is poorly maintained
- Other owners are unwilling or unable to contribute to repairs
- The property cannot be converted into a more standard structure
- The lender considers the property unsuitable security
In these cases, your options may be limited to specialist lenders, or the property may not be mortgageable at all.
Find out Your Options
Key Differences Between Freehold and Leasehold Flats
- Leasehold Flat: Typically, you pay a service charge and ground rent to a freeholder who manages the building. Maintenance responsibilities are shared, and there’s usually a formal structure in place to handle issues. This makes properties easier to sell as buyers know what they will need to pay.
- Freehold Flat: You own your flat outright with no obligation to a freeholder. However, there’s no overarching authority to handle building maintenance, which can lead to disputes or neglect. This is even more so when certain parties are not able to finance the work leaving other owners with the choice of covering costs themselves or allowing the building to fall into disrepair.
Is a freehold flat the same as a flying freehold?
No — although they are both considered non-standard properties.
A flying freehold refers to part of a property that extends over or under another property.
Freehold flats involve multiple units within one building with no leasehold structure.
Both can be harder to mortgage, but freehold flats are generally considered more complex due to shared responsibility issues.
Why Are Freehold Flats Considered High Risk by Lenders?
Lenders are cautious when it comes to freehold flats because of the potential for unresolved maintenance and structural issues.
If your flat shares a building with other freehold properties, there’s likely no legal framework to ensure that all owners contribute to necessary repairs. This can result in a poorly maintained building, reducing the property’s overall value and making it harder to sell.
Lenders want to protect their investment, and properties that come with added risks, like freehold flats, make them wary. Understanding these risks is crucial before you proceed.
If you are looking to buy a freehold flat, you should speak with a solicitor to fully understand what your obligations would be if there was a serious issue. It would also be worth exploring any works that have happened in the past and how they were funded, so you can get a feel for what it may be like owning the property.
Conclusion
Getting a mortgage on a freehold flat can be more complex than a standard property, but it is not impossible.
With fewer lenders available and stricter criteria, choosing the right lender and structuring your application correctly is essential.
Need help getting a mortgage on a freehold flat?
At Kerr & Watson, we specialise in non-standard property mortgages and know which lenders will consider freehold flats.
We’ll help you avoid delays, strengthen your application, and secure the right mortgage from the outset.
Contact Kerr & Watson today to get started.
